KUALA LUMPUR, Malaysia—Former Malaysian Prime Minister Najib Razak lost an appeal against his conviction last year on charges related to his role in one of the world’s largest financial scandals, dealing a setback to the disgraced ex-leader amid a resurgence of his political clout.
Malaysia’s appellate court struck down the appeal on Wednesday, upholding Mr. Najib’s conviction last year on all seven of the charges in question, including abuse of power, money laundering and criminal breach of trust. Justice Abdul Karim Abdul Jalil said the court’s three-member bench was unanimous in its decision.
“There is no error in the judgment of the High Court,” Mr. Abdul Karim said at a hearing held on the virtual-conference platform Zoom, referring to the body that convicted Mr. Najib. He called Mr. Najib’s actions a “national embarrassment.”
The appeals court granted a request by Mr. Najib’s lawyers to stay his sentence as they submit a final appeal to Malaysia’s Federal Court, the country’s highest judicial authority. Mr. Najib is to remain free on bail throughout the appeal, which could take months or years, during which he will still be eligible to hold public office. Mr. Najib is currently a member of parliament.
In a press conference after the hearing, Mr. Najib said he was disappointed with the judgment and pledged to continue his fight against the charges. He denies all wrongdoing.
The decision comes amid a remarkable political comeback by Mr. Najib and his allies. A ruling coalition backed by his party swept local elections last month, paving the way for snap nationwide polls that could restore its dominance. The party, United Malays National Organization, ruled without interruption for more than five decades until Mr. Najib’s downfall saw them voted out in 2018.
Mr. Najib, 68, was prime minister of the Southeast Asian nation for almost a decade from 2009, during which he was accused of embezzling more than $680 million from 1Malaysia Development Bhd., or 1MDB, a state investment fund that he founded and chaired. Government investigators said they believed the money was siphoned directly into Mr. Najib’s personal bank accounts.
The scandal, reported by The Wall Street Journal in 2015, led to calls for Mr. Najib’s resignation and his ultimate defeat in elections in 2018, when a coalition led by his political rivals trounced him in the polls and later revived a Malaysian investigation into his alleged financial misconduct. In July 2020, a Malaysian court found Mr. Najib guilty on seven charges, sentenced him to 12 years in prison and fined him nearly $50 million.
A separate series of civil lawsuits brought by the U.S. Department of Justice since 2016 resulted in the return to Malaysia of more than $1.2 billion in seized assets linked to the 1MDB scandal. The department says more than $4.5 billion of funds belonging to 1MDB were allegedly misappropriated by high-level officials and their associates. Money from the fund was allegedly laundered through Hollywood films, luxury yachts and valuable artworks.
Mr. Najib still faces trials on dozens of other charges related to the scandal.
Write to Feliz Solomon at feliz.solomon@wsj.com
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